According to Figure 24 the optimal point for the economy is

According to Figure 2.4, the optimal point for the economy is Fig2 Motorcycles Figure 2.4 B. D. indeterminate from the information given.

Solution

Correct option is (4).

An optimal point for the economy is any point lying on the PPF. Points lying inside the PPF are inefficient and points lying outside are unattainable. In the graph, more than 1 point lies on the PPF and so we cannot determine which among these points is optimal.